Now that central banks have cautiously been declaring victory over inflation, it may be an appropriate moment to ask whether they are well-prepared to deal with the next financial crisis. Of course, they – together with other financial authorities – work hard to avoid financial crises. But, in any country, sooner or later, there will be one.

Busy with their business-as-usual task of maintaining price stability, many central banks seem to have been taken by surprise when a bank failure or other